More Mortgage Incentives from Lenders
Yesterday we looked at some of the mortgage incentives offered by Bank of America to try and get borrowers to choose that company. But Bank of America is far from the only lender offering mortgage incentives. From green mortgages to first time homebuyer programs, the mortgage lending world is awash with mortgage incentives. The latest move in mortgage incentives is to combine products that lower upfront costs with the customer-friendly image. Inman News reports on the desire to be customer-friendly:
As the questionable practices employed by some mortgage lenders during the housing boom come under public scrutiny, lenders who can position themselves as consumer-friendly expect to benefit from borrowers’ heightened skepticism.
This is a good point. So, do mortgage incentives come with transparent policies that clearly state that in some cases a mortgage interest rate will be higher? Probably not. But there are more than just monetary incentives. Some lenders offer to plant a tree in your name if you go through them, helping you feel as though you are helping the planet when you go through them. Other lenders offer such mortgage incentives as a savings bond or a donation to a local charity in your name.
But no matter the mortgage incentives, it is a good idea to look past the hype, especially when it comes to the incentive of customer-friendly service. Inman continues:
Any mortgage lender or broker can claim to be looking out for their clients’ best interests. Jack Guttentag, a syndicated columnist who writes about mortgage lending, has created a set of criteria he thinks are essential for such claims to hold weight.
Guttentag defines “upfront mortgage lenders” as companies that provide prices online, disclose all lender fees including points, origination fees and fixed dollar fees, and guarantees them to closing. He says upfront lenders disclose all third-party fees, provide clear explanation of lock requirements (including payments), and disclose how loan officers are compensated.
Tags: mortgage incentives, mortgage lenders, home mortgage blog, home mortgage,
green mortgages, mortgage interest rates, first time homebuyer programs
September 27th, 2007 at 11:29 am
[…] Melanie McLister wrote an interesting post today onHere’s a quick excerptYesterday we looked at some of the mortgage incentives offered by Bank of America to try and get borrowers to choose that company. But Bank of America is far from the only lender offering mortgage incentives. From green mortgages to … […]